Monday, July 25, 2005

Yahoo gets 28 cents per page view

In a brief note, John Battelle mentions a report from analyst Safa Rashtchy that claims that Yahoo gets $.28 in revenue per page view.

$.28 per page view would be pretty remarkable, so I investigated. It appears to be true. In Yahoo's Q2 conference call slides (PDF), they say they got 3.14B page views in Q2 2005 and made $875M in revenue.

That's $.28 per page view. Impressive.

Seven months ago, it made a bit of a splash that Google was earning a dime per search. Yahoo's current numbers of $.28 per page view is quite a bit of progress on top of that. It appears the potential to monetize traffic with online advertising just keeps getting better and better.

Update: Umm... No, they don't.

In the comments to this post, Henrik Torstensson points out that the 3.14B page views is per day, not per quarter, so the revenue per page view is closer to $0.003. John Battelle, in his post, quoted Safa Rashtshy as saying $.28 "of revenue per average daily page" which I then misinterpreted.

Sorry, folks, my mistake. I got this one totally wrong.


Henrik Torstensson said...

In the slides for the conference call (p 10) Yahoo said that they ended Q2 with 3.2 billion page views per day. That means approx. 280 billion page views for the quarter and revenue per page view of $0.003.

Greg Linden said...

Thanks, Henrik. I posted this one way too quickly.

In retrospect, $.28/page view doesn't pass the sniff test. At current advertising rates, it would require that nearly ever page view results in a clickthrough on an ad.

I should have known better. Thanks for the correction.

Henrik Torstensson said...

No problem. I find the metric revenue per average daily page views exotic. Never heard of it before. Revenue per user or revenue per page view are both better I believe.